Review of Opportunities to Strengthen the Delivery of Sailing in Australia
partners and their motivations of coming together to make a business model happen; The revenue streams
Download 2.74 Mb.
|
- Navigate this page:
- Customer and Market Segments
- YA Membership/Customer Model
- Table 1: Differentiation of Membership Offerings
- 2. Utility (Fee-for-Service)
- Strategic Plan for Yachting in Australia
- DRAFT RECOMMENDATIONS I
- Business Focus
- Customer Focused and Driven Business Model
- National Vision and Plan for Yachting in Australia
- Customer-Driven Business Focus
- 2.2 SPORT DEVELOPMENT (COMMUNITY SAILING) KEY PERFORMANCE DRIVERS
- The Sailing Pathway and Programs
- Table 2:Trends in Membership for the period of 2002 - 2007 5
- Total 40,628 43,584 45,171
- Table 3: Proportionate Market Share in 2007 by State/Territory
- Population at End of Mar qtr 2007 (‘000) 6 Percentage of population who are members
- TOTAL 40,703 20 948.9 0.0019
- Indicative Pathways for Sailing
- Figure 1: Participant Entry and Progression Streams
- 2. Learn to Sail Club Program – (
| partners and their motivations of coming together to make a business model happen;
The revenue streams generated by the business model constituting the revenue model; The cost structure resulting from the business model. The adapted Osterwalder model requires minor modification to reflect the ‘demand’ orientated nature of YAs business. The adapted business model template for YA is attached in Appendix 10. When fully developed, the business model template could be utilised to describe YA’s various customers, what the business does and the value it offers these customers. The model should further describe the capabilities of YA and its partners which are required to create, market and deliver this value with the objective of delivering profitable and sustainable income. Currently, the business models for YA and the MYAs are not well articulated or developed and not reflective of a customer-driven model. Customer and Market Segments It is not possible to further develop the YA business model or strategic plan with any substance until there is a stronger evidence-based understanding of current and potential customer and market segments developed through national market research. However, it is beneficial to review existing national (The Sweeney Sports Report) and international research (Volvo Ocean Race) findings that study the overall market and those customers and enthusiasts with an interest in sailing. It is also worthwhile to review the internal considerations of YA and the Federal Assembly in relation to existing and targeted customer and market segments from the September 2007 strategic planning forum in Melbourne and the preliminary market segmentation strategy developed by the P4 Group for YA in 2004. These findings can be found in Appendix 5 of the report. The information gleaned from the Sweeney Sports, Volvo Ocean Race and P4 studies and the efforts of the FA are useful starting points to understand the profile of sailing’s current and potential customers and their needs. Often well-designed customer research confirms the anecdotal views of people closely involved in a sport, and it would be likely that much of the insight on current customers and obstacles to attracting new participants would be reflected in a nationally commissioned and structured research study. However, given that there are some contrasting and possibly insular views within the sport as to who the customer is and what they want, it is imperative that there is impartiality and supporting evidence to define the needs and characteristics of existing customers and those which represent the richest vein for sailing to target. This is particularly relevant in the highly competitive Australian sponsorship market. The scope of the proposed national market research study will need to be fully developed and refined by YA and an appointed market research agency. However, at a broad level, the primary objective of the proposed national market research project is to determine the groups or segments with the most potential to build and retain participation in sailing as well as increase the consumption of sailing goods and services and/or the offerings of YAs sponsors. There are a range of secondary objectives or specific issues that will need to be explored throughout this research, which potentially include: Identifying interest levels in sports and other activities. Exploring barriers and drivers of the major activities/sports. Identifying information sources for a number of sports. Establishing the current levels of interest in sailing. Determining the depth and breadth of attitudes towards sailing. Exploring the attitudes and perceptions of the sport of sailing, including: strengths and weaknesses barriers understanding. Establish the key brand parameters of sailing, and how they relate to Australians. Determine or estimate the likelihood to attend events or be involved in watching sailing on TV. Establish the likelihood to participate in sailing and interest in alternative formats. Explore attitudes towards club membership in general and its format, and identify some of the possible alternatives to traditional club membership. Explore various parameters and initiatives that may enhance appeal of the sport (including price issues). Identify the needs of existing sailors and develop a hierarchy of member priorities and preferences. Understand the demographic profile of existing customers with a view to utilising information to strategically target potential corporate sponsors. YA Membership/Customer Model Following the completion of a national market research study to understand customer attitudes, needs and segments (and therefore business focus), YA may wish to consider a hybrid service delivery model which caters for the demand-orientated nature of the business. A model is required that provides greater flexibility to enable YA to operate more nationally, commercially and directly to deliver tailored value propositions to different consumer segments, i.e. a value proposition which is customised and targeted to satisfy the needs of both the traditional membership and fee-for-service customers. Traditional sport membership and its associated commitments is becoming an increasingly difficult proposition to attract and retain participants – particularly those aged under 30. There is a prevailing ‘what’s in it for me’ sentiment within this broad segment, which requires a sophisticated understanding and development of the loyalty drivers (quality, service, value, convenience) sailing potentially offers to these consumers and a highly tailored approach to match product and service offerings with their needs. Therefore, it is the reviewer’s opinion that YA should develop within its business model a choice that enables the sport to provide consumer offerings matched to both the traditional membership model (subscription based) and the utility model (on demand, pay as you go) to remain competitive with other sport and lifestyle options. A very broad view and definition of these types of customers and how they are serviced is outlined in the table below. Table 1: Differentiation of Membership Offerings
Strategic Plan for Yachting in Australia The desired outcome of the current YA 2005–09 strategic plan to provide the vehicle for delivering a ‘systematic approach to change management within the Federation at both National and State/Territory levels’ and to ‘ensure a cohesive “all of sport” approach to planning and resulting in agreed strategic priorities’ has not been achieved. The current implicit business model of YA is not delivering the desired outcomes of the sport or business – there are roadblocks. The current behaviour and practices of the sport within its federated structure are dysfunctional. Effective collaboration between the centre (YA) and its parts (MYAs) is being compromised by passive resistance and distrust between some states and YA, which is impeding the ability of YA and MYA management to implement a national vision and strategy for sailing in Australia. A national plan for yachting in Australia does not exist – rather there are nine strategic plans of the YA and MYAs which present a fragmented blueprint of future directions of the sport and contribute to substantial inefficiencies to sailing’s collective activities. The recent strategic planning forums in September and October 2007 with the Federal Assembly identified the need for a more focused approach and more effective allocation of its finite resources to build yachting’s whole-of-sport competitive advantage. The plan needs to be national and supported by specific and measurable performance targets for mission critical goals. The current strategic plan is ineffective as a YA and MYA business tool and reflects the lack of buy-in by the stakeholders. Real commitment to cultural change (lasting changes to the shared ways of thinking, beliefs, values, procedures and relationships of the stakeholders) is needed at all levels to one direction for the sport – endorsement is simply not enough. Enduring cultural change can only happen over time, hence the need for staged structural changes as discussed in Section 2.5. However, in the first instance YA must define its business model and then provide evidence for what the rationale of the vision and focus of the business will be before the strategic roadmap for ‘yachting in Australia’ can be fully developed. DRAFT RECOMMENDATIONS I BUSINESS STRATEGY Provisional Views on Business Strategy Options The reviewers have recommended that threshold decisions on business focus, business model and the development of the strategic plan for yachting in Australia be deferred until such time that market research is completed, which can provide evidence-based data which substantiates the case for business strategy. However, it is instructive for the reviewers to present their views on the salient business strategy options based on the consultations and observations over a period of ten months of working with the sport, and to draw on extensive experiences within the sporting industry over the past decade. It should be noted that the reviewer’s observations are provisional and are subject to confirmation (and variation) following the completion and analysis of the proposed market research. The reviewer provides the following observations concerning YA’s key business strategy options:
Customer-Driven Business Focus As a first step in the development of the business strategy for yachting in Australia, YA should invest in appropriate national market research to assist the sport in understanding the attitudes, needs and preferences of its current customers and those the sport would like to acquire. The outcomes of this research will guide YA and the FA on the products and services it may offer to its targeted customer segments, provide guidance on business focus and how the business model should be constructed. It is recommended that:
YA Business Model YA should resolve the fundamental questions of its business model, which are: What the business does and why; Who its customers are; and How the business makes its money. The financial modelling associated with this process should determine the fixed costs of YA’s operations and what the marginal costs of servicing additional new members are. It is recommended that:
National Strategic Plan Development of the new strategic plan should be deferred until the completion of the market research project. A 12-month interim plan should be developed to cover the activities of 2008. The new strategic plan should work towards a 2009–2013 timeframe and incorporate the recommended directions of the Strengthening Sailing Review, the national market research project, and the YA business model and initiatives (which emerge as a result of the research findings). The plan should be future-focused and provide a clear roadmap for the sport to deliver its core business. The plan should be supported by specific and measurable performance targets for mission-critical goals, and commitment is required at all levels towards an agreed national vision for the sport using one unified national strategic plan delivered through a national business model for yachting. It is recommended that:
2.2 SPORT DEVELOPMENT (COMMUNITY SAILING) KEY PERFORMANCE DRIVERS Pathways and Programs (participant recruitment, development and retention for recreational and competitive streams) Training Membership Model and Services Sport Development Links to High Performance Coaching and Officiating (volunteers) Events The Sailing Pathway and Programs Active paid membership numbers for Yachting have remained relatively stable over the past five years, reaching a peak of 45,171 in 2004 and dropping to 40,703 in 2007, representing a 4.5% decline in the past 12 months. According to a recently commissioned study by Yachting Victoria (YV) with its clubs, it is believed that approximately 45% to 50%3 of the capitated membership engage in regular competitive or semi-competitive racing on the weekends or mid-week during the summer period. In 2006, according to ERASS4 research, 90,500 people participated in sailing in Australia. These figures indicate that upwards of 50,000 participants may fall into the non-affiliated categories of recreational, learn to sail and occasional participants. While there is a perception that sailing is elitist and expensive, this not necessarily the case at the entry level of the sport. The 2007 YV club survey revealed that the total number of boats in Victoria (5,200) compared to the 12,000 active registered sailors supported the premise that sailing can be a widely accessible and affordable sport as more than half the participants do not own boats. Table 2:Trends in Membership for the period of 2002 - 20075
Table 3: Proportionate Market Share in 2007 by State/Territory
By way of comparison, many of the mass participation team sports such as AFL, Rugby Union and Rugby League have typically experienced annual growth of 5% to 9% in the same period – Cricket has experienced 16% growth in the last 12 months. Overall, the trend in sports participation in Australia is moving toward a more flexible (pay as you go) and recreational delivery model and a growing reluctance to join a club and the associated commitments that come with that. This leads to demand for a fee-for-service model (customer driven) rather than a subscription-driven (membership) model. It must be noted though that unlike football or netball where the sport can be played and skills picked up over time, sailing is more similar to swimming which requires some form of structured basic skill training at the beginning, so any membership mode would need to allow for provision of this basic training. The growth in recreational power boating is considered to be having a detrimental effect on club sailing membership numbers nationally; however, only WA and Victoria have current and reliable data to reflect its membership segments. In response to the business priorities of their Member Clubs, QLD, WA and Victoria have made a concerted shift to embrace and service the boating sector as a core MYA business focus – thus creating tension in the governance and management of the sport. While the prolonged drought conditions present sailing with a competitive advantage to target participants with yachting clubs’ proximity to the coastal regions, inland sailing clubs are being impacted (particularly Northern Victoria) by the effects of a variable climate. Proportionately, the inland clubs represent a small membership component of sailing’s overall participants, however it is appropriate to acknowledge and consider the challenges the drought presents to these clubs. As an example, Bendigo Yacht Club, located at Lake Eppalock, has experienced a decline in membership from 450 to 156 members since 2002. The club is unable to conduct recruiting and coaching programs, and will continue to struggle with their ongoing viability until there is adequate rainfall. The Sailing Pathway Like many other organised sports, sailing features both a competitive stream of participants and a recreational/social stream. Sailing does provide genuine entry points for people of all ages, however depending on the age of entry into the sport the pathway will include elite competitive and recreational streams or narrow to intra-club (semi-competitive) and recreational options. There are more than 100 recognised sailing classes in Australia, 11 of which are represented at the Olympic Games (see Appendix Six for Olympic class descriptions and Australian performances). There are three racing formats for competitive sailing:
Fleet Racing is the most common form of sail racing. Fleet Racing is used at the Olympic Games, and is also the form of racing generally used in the longer haul ocean races. In fleet racing a number of boats start on one start line, race around the same course, and then cross the finish line. The length of the race or the type of course varies from event to event. Team Racing The recognised format for the Team Racing World Championship involves racing in two-handed dinghies, three a side. The boats are provided by the organisers to ensure that they are evenly matched, and should be of a type that can be sailed effectively without there being a premium on strength or an optimum weight. The two teams of three race to try to achieve a winning combination of places – the lowest score wins. The scoring system is usually: 1st place – 1 point, 2nd place – 2 points, 3rd place – 3 points, and so on. A team that scores ten or less is therefore the winner, so that 2, 3, 4 beats 1, 5, 6. Match Racing A match race consists of two identical boats racing against each other. With effective boat handling and prudent use of wind and currents, a trailing boat can escape the grasp of the leader and pass. The leader uses blocking techniques to hold the other boat back. This one-on-one duel is a game of strategy and tactics. While there are well-articulated elite athlete pathways documented in the YA National Youth Development Plan for talented young sailors, there is no clear or consistent resource or direction for the sport which encompasses the preferred whole-of-sport national pathway from entry level to elite. YA has developed the basic diagrammatic pyramid of the Olympic Sailing Pathway (Section 2.3, Figure 3), however this does not integrate the levels of the pathway below the sub-elite. There is a degree of consensus about the options available for new entrants, and these can be described by most active members of the sailing community. However, the level of understanding for people outside of the sailing community is in fact very poor. The reviewer’s frank assessment of the under-development of sailing’s pathways and programs often elicited a defensive response from the sailing fraternity. This is due to the fact that if you know what to look for, an offering in sailing exists – the dilemma for sailing is that it is not uniform in its promotion or delivery. In the absence of a nationally developed and articulated participation pathway (encompassing both competitive and recreational), there are many examples of clubs demonstrating practical and sensible leadership in the provision of accessible pathways and participation development for sailing. A good example is the Royal Perth YC which has established a strategic objective of being the ‘go to sailing training centre for WA’. The club has identified and purchased classes of boats most appropriate for client development (Optimist, Laser, 420, BW8’s, Tasar) and has appointed a full-time Club Development Officer and Head Coach to drive the development process. The RPYC model provides a strong national blueprint for adoption in metropolitan and larger regional centres; however, these types of positive initiatives are often occurring in isolation. As one YA staff member describes the situation:
Indicative Pathways for Sailing Indicative pathways for entry-level sailors can potentially occur through a number of forms. The three key streams are: 1. Family; 2. Club; and 3. Schools. The diagram on the following page summarises a participant’s pathway through each of these streams. Figure 1: Participant Entry and Progression Streams
Directory: wp-content -> uploads -> 2013 2013 -> International post doctoral research fellowship programme final report title of the research 2013 -> Seals Family History 1565 to 2004 2013 -> Rao bulletin 15 July 2013 html edition this bulletin contains the following articles 2013 -> R institute of technology school of foreign languages 2013 -> Provisional Programme – subject to change thursday 10th april 2013 -> June, 2013 National hiv testing Day Month Men’s Health Week Hurricane Safety Month 2013 -> In memory of the residents of the Parish Chesham Bois that served their country during wwii 2013 -> Federal contract awards in georgia april 2013 Download 2.74 Mb. Share with your friends:
|
Club Member